Reinstate Wisconsin's historic preservation tax credits

Wisconsin's new historic preservation tax credits are proving hugely successful, driving new economic development and jobs — but also causing the state to bring the program to a halt.

Gov. Scott Walker reaffirmed our state's commitment to preserving our architectural and cultural heritage by signing the enhanced tax credits into law, increasing them from 10% to 20% for eligible expenditures on historic preservation projects. This was a monumental decision that would not only protect important historic buildings and districts but also spur job growth and economic development throughout the state.

The tax credits were heralded by both the development community and historic preservationists. Developers predicted the tax credits would provide a huge boost to construction efforts and become a vital job creation tool. They were exactly right.

The credits energized developers who flooded the Wisconsin Historical Society with applications; 29 projects across the state were approved and are now eligible for the tax credits. The Milwaukee-area projects include the Posner Building at W. Wisconsin Ave. and N. Plankinton Ave., the Pritzlaff Building in the Historic Third Ward and the Milwaukee Paper Box Building at 1560 W. Pierce St.

The program has worked so well that the Wisconsin Economic Development Corp. decided to put the brakes on it. WEDC recently placed a freeze on the program through a moratorium, fearing the potential tax revenue impact with the high demand for the credit. WEDC and Walker, however, should be looking at this program as an efficient way to create jobs, stimulate the economy and increase tax revenue for both state and local governments instead of fearing the potential cost.

While a pragmatic approach is certainly valued, it is imperative that the state agrees on an immediate solution to lift the moratorium as soon as possible.

Neighboring states are offering credits upward of 15% to 20%, and in order to stay competitive Wisconsin needs to at least match that effort. At least 30 states across the country provide historic preservation tax credits, and most of those states exceed the 20% range for commercial projects.

Historic preservation tax credits provide just the boost that developers need to put people back to work. Because of this program, 29 projects across the state are estimated to create over 2,000 permanent jobs and 1,000 construction-related jobs. Why stop there? With dozens of additional projects searching for the boost they need to get started, this tax credit is a necessary tool for moving Wisconsin forward and providing high-paying jobs to hardworking families.

Additionally, these tax credits generate significant revenue for both state and local government that outweighs the cost of the credit.

Ensuring our state's architectural heritage and historic legacy is an important aspect of community building. Many of the buildings that benefit from this program are important assets to the local community.